Municipal Securities: Rapid Fire

What this video covers

• The GO vs. revenue bond split: voter approval and taxing power versus project income and no vote, and why overlapping debt is only a GO concern
• How the taxable equivalent yield (TEY) formula works as tax-exempt yield divided by (1 minus marginal tax rate), and why multiplying by the tax rate is a trap
• When in-state munis are triple tax-free and why U.S. territory bonds are triple tax-free for all investors regardless of residence
• Why gross pledge puts bondholders first and net pledge puts operations and maintenance (O&M) first, and why the rate covenant matters most on revenue bonds
• The four-tier syndicate order priority (presale, group, designated, member), why the selling concession is always the largest spread piece, and the difference between Eastern (undivided) and Western (divided) accounts
• The specific numbers that repeat on the exam: $5,000 par, T+1 settlement, 30/360 day count, 15-minute RTRS reporting, 1.25x debt service coverage ratio (DSCR), $1 million disclosure threshold, and flat trading in default
• Why the Municipal Securities Rulemaking Board (MSRB) writes rules but does not enforce them, that municipal securities are exempt from Securities and Exchange Commission (SEC) registration but not from anti-fraud rules, and why a legal opinion says nothing about creditworthiness